On The Legal Way To Break The Deadlock Of The Company

Corporate deadlocks are often generated in the practice of corporations and infact, they do exert an adverse effect on corporate operations due to the legislativeblank and judicial nonperformance in this area. Not only corporations but alsocorporate shareholders are under the negative influence of corporate deadlocks.Judicial interferences became formal remedies to corporate deadlocks after thelatest Corporate Law was issued. But the latest Corporate Law doesn't have a wholeset of legal stipulation on remedies of corporate deadlocks.The first part of this article is preface, in which the author first clarifies the aimof this article-studying the remedies on corporate deadlocks for the sake of legalpractice and theoretical research. Then the author focuses on remedies to the limitedliability corporations after analyzing the nature of limited liability corporations andtheir close relations to corporate deadlocks.The second part is a rough introduction of corporate deadlocks, includingdefinition, classification, harm, the reasons why they come into being, etc.The third part is about the remedies to corporate deadlocks, which includesdissolutions, mandatory buyout, stipulation in corporate article, receivership,mediation, arbitration, mediation-arbitration, and appointing provisional directors.The author mainly uses the American law for reference because there are few researchmaterial in this area and other countries, except American, pay little attention on thisproblem.In the fourth part, the author analyzes the judicial interferences with corporatedeadlocks. Combining the characteristics of judicial interferences in common law andcontinental law and also the practice in our country, the author makes a conclusionthat we must be cautious when we offer judicial remedies. At last the author alsomakes an introduction on classification of judicial interferences. When suitablecorporate deadlocks happen, judicial remedies should be given. While whennon-suitable corporate deadlocks happen, whether or not judicial remedies should begiven, it depends.In the fifth part, the author starts from the progress of the latest Corporate Law,and then made some suggestions on the legal system of corporate deadlocks. Thesesuggestions include cautious judicial interference, being wary when using dissolution,mandatory buyout, attaching importance to mediation and other alternative remedies.The sixth part is a simple summarize of this article and the author put forwardthat as a legal professional, we should shoulder heavy responsibilities and make anunremitting efforts.